As the length of the unexpired term of a West Kensington domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Most flat owners in West Kensington will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in West Kensington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Kensington valuers.
Last year Jason, came critically near to the eighty-year threshold with the lease on his ground floor flat in West Kensington. In buying his home twenty years previously, the unexpired term was of minimal significance. Luckily, he realised he would soon be paying way over the odds for a lease extension. Jason was able to extend his lease just under the wire in January. Jason and the landlord eventually settled on a premium of £5,000 . If he not met the deadline, the premium would have become more costly by at least £975.
Mrs W Cox bought a garden flat in West Kensington in November 2004. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative properties in West Kensington with 100 year plus lease were valued about £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed on 15 June 2086. Given that there were 60 years left we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus fees.
An example of a Lease Extension matter before the tribunal for a West Kensington residence is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case was in relation to 1 flat. The remaining number of years on the lease was 37.79 years.